What happened
The US services sector grew in June at about the same pace as the prior month, with the ISM Services PMI at 54. A reading above 50 signals expansion, and price pressures eased slightly during the month.
Services cover the bulk of US activity, from restaurants and healthcare to finance and technology.
Why it matters
The health of the US economy ripples across global markets. Steady services growth suggests the worlds largest economy is not stalling, even with interest rates held high and hiring cooling.
Slightly softer price pressures also offer a modest hint that inflation is not accelerating from here.
Explained simply
The PMI is like a monthly mood survey of business managers. They are asked whether activity is speeding up or slowing down, and the answers are boiled into one number. Above 50 means the engine is still moving forward, and 54 says it is cruising steadily rather than racing or stalling.
What it means for you
A resilient US economy tends to support share prices globally, which flows through to UK pension pots and funds with international exposure. For anyone holding a global tracker, steady American growth is a quiet tailwind worth keeping in view.
